Question

Which of the following is a positive economic​ statement?

A. The government should implement a national consumption tax.
B. The standard of living in the United States is too low.
C. The U.S. government should increase regulations on the banking industry.
D. If the price of beef​ falls, a larger quantity of it will be bought.

Answer 1

Answer:

(D) If the price of beef falls, a larger quantity of it will be bought.

Explanation:

A positive economic statement refers to those statements regarding macroeconomic issues that can be tested, proved and are backed with economic theories. They express an objective explanation and the sentence in letter "D" represents a fact in which it is proved that the market reacts appropriately to the theory of supply and demand.